Understanding Repayment Assistance Plan (RAP): Pay More? Or Longer? New Student Loan Rules Explained

Starting July 1, 2026, federal student loan borrowers will see big changes to repayment rules under President Donald Trump’s One Big Beautiful Bill.

The law replaces the old 10-year Standard Repayment Plan with a tiered system based on how much you originally borrowed.

 

How It Works

• Under $25,000: Repay over 10 years (120 payments)

• $25,000–$49,999: Repay over 15 years (180 payments)

• $50,000–$99,999: Repay over 20 years (240 payments)

• $100,000+: Repay over 25 years (300 payments)

Payments stay the same each month until the loan is paid off. Any remaining balance after 30 years is forgiven.

You’ve earned certain benefits! Make sure you’re getting them here.

 

Automatic Enrollment & RAP Option

Borrowers will automatically be placed in the Standard Plan unless they choose the new Repayment Assistance Plan (RAP):

• RAP bases payments on income and family size

• Minimum payment is $10, even if you have no income

• No adjustment for inflation on income thresholds

• Forgiveness after 30 years, but interest is not capped

 

What’s Ending

By July 1, 2028, these existing income-driven repayment (IDR) plans will be eliminated:

• SAVE (Saving on a Valuable Education)

• PAYE (Pay As You Earn)

• IBR (Income-Based Repayment)

• ICR (Income-Contingent Repayment)

Borrowers on these plans must switch to either the new Standard Plan or RAP.

 

Impact on Borrowers

• Higher balances → longer repayment terms (20–25 years) and more total interest paid.

• Smaller balances → same or shorter repayment than before, possibly less interest.

• Not income-based: Monthly payments may be higher than IDR plans for low-income borrowers.

Example: A borrower with $35,000 in federal loans at 4% interest will pay about $259/month for 15 years, totaling over $46,600.

 

What to Do Now

• Review your current repayment plan and monthly budget.

• Use the Loan Simulator to see your costs under the new rules.

• If you rely on PSLF (Public Service Loan Forgiveness), make sure your repayment plan will still qualify.

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